Taxes/Transcript
Transcript Title text reads, The Mysteries of Life with Tim and Moby. Tim and Moby work behind the counter at a fast-food restaurant. TIM: Moby, those fries ready yet? Moby beeps. He shoots laser beams out of his eyes to cook fries in a deep fryer. His hand turns into a salt shaker, which he uses to season the fries. TIM: Wow. You're really earning that 5.25 an hour. A letter appears. Text reads as Tim narrates: Dear Tim and Moby, Why do we have taxes? Sincerely, Bentom18 TIM: Well, every service that the government provides is paid for by taxes! In fact, taxes pay for a lot of things that you might take for granted! Just take a look outside. Without taxes, roads wouldn't be paved, bridges and tunnels wouldn't be built, and there wouldn't be any public buses or trains. On-screen, a series of images appear: a paved highway; a bridge; a tunnel; a bus; and a train. TIM: There'd be no public schools, no police departments, no fire departments, and no military either! On-screen, a series of images appear: a school; a police station; a firehouse; and a tank. TIM: Every government employee, from the President of the United States to your town's garbage collectors, depends on tax money for their salary. On-screen, two images appear: the White House, and a garbage truck. Moby beeps. TIM: Well, there'd probably still be French fries. Moby beeps. TIM: Taxes are as old as society itself. Back in ancient Egypt, farmers had to give a percentage of their crops to the Pharaoh! On-screen, an Ancient Egyptian farmer gives a basket of crops to a Pharaoh. TIM: In fact, all the way up to the 19th century, you could either pay taxes in cash or as a percentage of your sheep, or your grain, or your fabric; basically, with whatever you had. On-screen, a medieval peasant gives a sheep to a nobleman. Moby beeps. TIM: Nope, sorry; you can't do that today. Anyway, since taxes pay for so much stuff, there are lots of different tax types. Federal taxes are used by the national government to pay for things like interstate highways, national parks and monuments, and the military. The federal tax system is overseen by an organization based in Washington D C called the Internal Revenue Service, or I R S. On-screen, the I R S building and logo appears. A label reads, Internal Revenue Service, I R S. TIM: And state and local taxes pay for, well, stuff that you'd find in your state or your town, like schools, hospitals, and parks; and sometimes even sports stadiums! On-screen, a government building appears. A label reads, state tax. A suburban street appears. A label reads, local tax. Moby beeps. TIM: Well, they're collected in a lot of different ways! For example, there's sales tax. That's calculated as a percentage of the price of the things you buy. Sales tax in this state is about six percent, so when you buy a one dollar hamburger, you actually have to pay one dollar and six cents, because of sales tax! On-screen, Tim rings up one dollar on the cash register. He pushes a button that reads, plus tax, and a button that reads, total. The price now reads, one dollar and six cents. Moby beeps. TIM: Yeah, you're probably thinking of income tax. If you have a job, the government takes those taxes right out of your paycheck. Here, take a look at mine. On-screen, Tim's paycheck appears. TIM: It says that I made 200 dollars this week; but I don't get to take home 200 dollars. This tax is specifically for Social Security, a federal program that helps retired citizens support themselves. On-screen, Tim points to a line on the check that reads, Social Security Tax, two dollars and 90 cents. TIM: This tax is from the state government. On-screen, Tim points to a line on the check that reads, State Tax, nine dollars. TIM: And this tax is for robots. Wait a minute... On-screen, Tim points to a handwritten line on the check that reads, Robot Tax, one million dollars. TIM: Nice try, sort of. Anyway, in most Western countries, income tax is progressive. A label appears, reading, progressive. TIM: That means that as you make more money, you have to pay a higher percentage of it to the government. For example, let's say you make 25,000 dollars a year. The government might only take 10 percent of your earnings. On-screen, a small house appears with a modest car parked outside. Labels read, 25,000 dollars, and 10 percent. TIM: But if you make 100,000 dollars, the government might take 25 percent. On-screen, a larger house appears with a fancier car parked outside. Labels read, 100,000 dollars, and 25 percent. TIM: And if you make a million dollars, the government might take 35 percent! On-screen, a mansion appears with a limousine parked outside. Labels read, one million dollars, and 35 percent. TIM: And it's not just for individual people; businesses and corporations have to pay taxes too. Moby beeps. TIM: Right, and the government checks to make sure everyone is paying the right amount of taxes. Each year, every individual and corporation has to file a report to the IRS called a tax return. A label appears, reading, tax return. TIM: It's basically just a bunch of forms that indicate how much money you made that year and how much money you paid in income taxes. On-screen, tax forms appear. TIM: There are complex formulas for calculating exactly what your tax amount should have been, and sometimes people pay too much or too little. So if you happen to have paid more than your fair share, the government pays you back after you file your tax return! But if you owe taxes, you have to pay up; or else risk getting fined or even jailed. U S tax returns for the previous year are due in the mail by tax day, which is usually April 15th. A label appears, reading, tax day. A calendar shows the month of April, with April 15th circled. TIM: Alright Moby, let's go deposit these paychecks! Moby opens his chest panel, revealing an ATM machine for the First National Bank of Moby. Moby beeps. TIM: How dumb do you think I am? Moby beeps. TIM: No, I… I guess I don't want you to answer that. Category:BrainPOP Transcripts